Child tax credit and free childcare question

Mishomeister · 24 March 2017 at 9:26PM

Al the benefit calculators I have used so far were asking about current tax year income but seemed to be ignoring the actual current income.

My question is: I had a decent salary up until mid November but then I lost my job and after 3 months found another one one significantly lower salary(15.5k less pa).

Due to the fact tha I had that old job on decent pay my overal income for the current tax year is too high for me to qualify for child tax credits and free childcare for my 2yo.

If I was to apply before the 6th April, will the benefit people take my current level of income. or will they be obsessed with my previous earnings?

Darksparkle · 25 March 2017 at 9:39AM

Tax credits is always based on the income for the tax year.

Tax credits is based on the previous tax years income unless the current tax years income increases/decreases by £2,500.

If you apply now the application form will ask for your actual income for 2015/16. When the claim is processed you can report any changes to 2016/17 income.

As the tax year changes in April, you can then report a change to 2017/18 income.

How many hours do you work per week? Are you single or living with a partner? If you meet the criteria for help with childcare through tax credits, you won't meet the criteria for free childcare for 2 year olds.

Child tax credit and free childcare question

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